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UNCLAS SECTION 01 OF 12 TOKYO 001962 
 
SIPDIS 
 
DEPT FOR E, P, EB, EAP/J, EAP/P, EAP/PD, PA; 
WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST DIVISION; 
TREASURY/OASIA/IMI/JAPAN; DEPT PASS USTR/PUBLIC AFFAIRS OFFICE; 
SECDEF FOR JCS-J-5/JAPAN, 
DASD/ISA/EAPR/JAPAN; DEPT PASS ELECTRONICALLY TO USDA 
FAS/ITP FOR SCHROETER; PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR; 
CINCPAC FLT/PA/ COMNAVFORJAPAN/PA. 
 
E.O. 12958: N/A 
TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 08/26/09 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
North Korea problem: 
4) Ambassador Goldberg meets Foreign Ministry's Deputy General Saiki 
on North Korea issues (Nikkei) 
5) Goldberg, Saiki confirm that sanctions on North Korea are 
effective (Yomiuri) 
6) 67% of election candidates approve of full sanctions against 
North Korea (Sankei) 
 
7) Another former Foreign Ministry official admits to "secret pact" 
on nuclear transit (Yomiuri) 
 
Political affairs: 
8) Asahi-Tokyo University joint survey of election campaign finds 
LDP relying on organizational power; DPJ stressing ability to govern 
(Asahi) 
9) Voters are skeptical about polls showing DPJ will pick up 300 
seats in the Lower House election (Tokyo Shimbun) 
10) Impact of 300-seat win predictions for the DPJ could affect the 
outcome of the race (Tokyo Shimbun) 
11) Hatoyama Cabinet to be formed immediately after election 
(Sankei) 
12) Ichiro Ozawa may stay on as DJP vice president (Tokyo Shimbun) 
 
13) Ozawa blasts Nokyo (farm cooperatives) in the campaign (Yomiuri) 
 
14) Ozawa's influence in the DPJ is growing (Tokyo Shimbun) 
 
15) Japanese companies about to clinch deal for oil rights in Iraq 
(Yomiuri) 
16) If greenhouse gases cut by 15% by 2020, the additional burden 
for households would come to 5 million yen (Nikkei) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Japan asked U.S. to keep documents on nuclear-related secret pact 
classified in 1999 
 
Mainichi: 
Prosecutors plan to exclude people close to defendant as citizen 
judges in sex-crime trials 
 
Yomiuri: 
Justice Ministry to delay drafting bill aimed at scrapping statute 
of limitations in view of DPJ's moves 
 
Nikkei: 
Toyota to cut output capacity 1 million units worldwide 
 
Sankei: 
Shock of reducing greenhouse gas emissions by 30 percent (Part 1): 
DPJ plan designed to increase the financial burden per household by 
360,000 yen 
 
 
TOKYO 00001962  002 OF 012 
 
 
Tokyo Shimbun: 
DPJ Deputy President Ozawa to remain in post; Hatoyama begins 
mulling over lineup of new administration 
 
Akahata: 
Nation needs a leap of JCP, the "constructive opposition party" 
 
2) EDITORIALS 
 
Asahi: 
(1) 2009 general election: Solid pension system essential 
(2) Supreme Court justices must be reviewed openly 
 
Mainichi: 
(1) 2009 Lower House election: Horizontal relationships must be 
reset in growth strategy 
(2) Lower House election: Medical system on verge of collapse relies 
heavily on current working generation 
 
Yomiuri: 
(1) China, Asia policy vital part of election debate 
(2) South-North dialogue: Strict sanctions essential until the North 
abandons its nuclear program 
 
Nikkei: 
(1) 2009 Lower House election: Setback of postal reform too costly 
for nation 
(2) Public needs information on flu vaccines 
 
Sankei: 
(1) Policies most important in election 
(2) Postal privatization must continue 
 
Tokyo Shimbun: 
(1) 2009 Lower House election: Times require reform of relationship 
between lawmakers and bureaucrats 
(2) False news report: Restoring public trust a challenge 
 
Akahata: 
(1) Time to pick the party that will provide childrearing support 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, August 25 
 
NIKKEI (Page 2) (Full) 
August 26, 2009 
 
08:31 
Attended cabinet meeting at Kantei. 
 
09:12 
Met U.S. Ambassador Roos. 
 
10:24 
Voted absentee ballot in Chiyoda Ward, Tokyo. 
 
10:56 
Left JR Tokyo Station on Komachi 15. 
 
12:36 
Arrived at JR Sendai Station. 
 
TOKYO 00001962  003 OF 012 
 
 
 
12:40- 
Delivered speeches Sendai City. 
 
14:44 
Left JR Sendai Station on Max Yamabiko 118. 
 
16:29 
Arrived at JR Omiya Station. 
 
16:58 
Left JR Omiya Station on Toki 335. 
 
17:10 
Arrived at JR Kumagaya Station. Delivered speech in front of the 
station. 
 
18:25 
Delivered speech in Higashi-Matsuyama City, Saitama Prefecture. 
 
19:31 
Delivered speech in Kawagoe City. 
 
20:53 
Arrived at his official residence. 
 
NORTH KOREA PROBLEM 
 
4) Japan, U.S. reaffirm cooperation on N. Korea policy 
 
NIKKEI (Page 2) (Full) 
August 26, 2009 
 
Visiting U.S. State Department Coordinator Goldberg (for sanctions 
on North Korea) met with the Foreign Ministry's Asian and Oceanian 
Affairs Bureau Director General Akitaka Saiki, and the two officials 
confirmed that Japan and the United States would continue to 
cooperate to implement sanction measures against North Korea. They 
took the position that the sanctions taken so far were having a 
"considerable impact" on North Korea. In addition, they also agreed 
that it would be necessary to carefully determine the real meaning 
of North Korea's recent dialogue-oriented moves. 
 
Before his visit to Japan, Goldberg visited Singapore, Thailand, and 
South Korea. Goldberg, in his meeting with Saiki, assessed the 
situation, saying: "Generally speaking, all these countries are 
satisfied with the implementation of a resolution adopted at the 
United Nations Security Council." 
 
North Korea has recently been accelerating its moves toward talks. 
In this regard, Goldberg and Saiki confirmed that the recent 
phenomenal events and the efforts made by the countries concerned 
toward the denuclearization of North Korea must not be mixed up. 
 
South Korea's Hyundai Group and North Korea have agreed to resume 
sightseeing tours of Mt. Kumgang. "We will respect the South Korean 
government's decision," Saiki said. "But," he added, "the 
international community will watch how the foreign currency earned 
will flow, and how the money will be used." 
 
5) MOFA official Saiki, U.S. Coordinator for Implementation of DPRK 
Sanctions Goldberg agree that sanctions have been effective 
 
TOKYO 00001962  004 OF 012 
 
 
 
YOMIURI (Page 2) (Full) 
August 26, 2009 
 
Akitaka Saiki, director general of the Asian and Oceanian Affairs 
Bureau, Ministry of Foreign Affairs, met U.S. State Department 
Coordinator for the Implementation of UNSC Resolution 1874 Philip 
Goldberg at the ministry on August 25. They agreed that the UN 
Security Council resolution imposing sanctions against North Korea 
has been very effective. 
 
Goldberg visited Thailand and other Southeast Asian countries before 
coming to Japan. He said that "the implementation of sanctions in 
these countries is generally satisfactory." Saiki explained the 
circumstances that led to the special measures law on cargo 
inspection against North Korea being scrapped in the previous Diet 
session. 
 
Saiki and Goldberg also discussed the agreement between the DPRK and 
the South Korean Hyundai Group to resume the Kumgang-san tourism 
project and other business transactions and agreed that the flow of 
funds after the resumption of business activities should be watched. 
The two also exchanged views on the DPRK's recent diplomatic moves, 
such as its dispatch of a delegation to extend condolences at former 
South Korean President Kim Dae Jung's funeral. 
 
"We should not be unsettled (by the DPRK's recent moves)," Saiki 
told reporters after the meeting. "The most important thing is that 
North Korea should take action in accordance with its pledge at the 
Six-Party Talks to abandon nuclear weapons." 
 
6) Poll: 67.2% of candidates back all-out sanctions against N. 
Korea 
 
SANKEI (Page 3) (Abridged) 
August 26, 2009 
 
The families of Japanese nationals abducted to North Korea and their 
supporters conducted a questionnaire survey of all candidates 
running in the upcoming general election for the House of 
Representatives. According to its findings released yesterday, 67.2% 
said Japan should invoke all-out sanctions against North Korea. In a 
previous survey taken at the time of the last election for the House 
of Representatives, 45% said "yes" when asked if Japan should impose 
economic sanctions. The pro-sanctions figure this time was 
substantially higher than the figure for the last survey. The 
response rate also rose 1.3 points to 77.4%, showing high interest 
among the candidates. The survey was conducted of all candidates 
totaling 1,374 running in single-seat constituencies or up for 
proportional representation. Answers were obtained from 1,063 by 
Aug. 24. 
 
In the survey, three questions were asked. One of the three 
questions was: "Do you think the abduction issue is a matter of top 
priority?" In response to this question, 87.3% answered "yes," with 
only 0.2% saying "no" and 12.5% giving other answers. When asked 
whether all-out sanctions should be invoked against North Korea, 
"yes" accounted for 67.2%, with "no" at 15.0% and "other answers" 
accounted for 17.9%. The third question was: "The government takes 
the position that Japan cannot normalize diplomatic relations with 
North Korea as long as the abduction issue is not resolved. Do you 
support this policy course?" To this question, 94.0% answered "yes," 
 
TOKYO 00001962  005 OF 012 
 
 
with 2.4% saying "no" and 3.6% giving other answers. 
 
7) Plaintiffs suing for disclosure of documents relating to alleged 
secret agreement during Okinawa's reversion to subpoena ex-MOFA 
official in court case 
 
YOMIURI (Page 38) (Full) 
August 26, 2009 
 
Hearings for the lawsuit in which former Mainichi Shimbun reporter 
Takichi Nishiyama, 72, and other plaintiffs filed a complaint that 
the government's decision not to disclose documents relating to the 
"secret agreement" on negotiations for the reversion of Okinawa to 
Japanese administration in 1972 was illegal took place at the Tokyo 
District Court on August 25. The plaintiffs applied for a subpoena 
to summon Bunroku Yoshino, 91, director general of the North 
American Affairs Bureau of the Ministry of Foreign Affairs (MOFA) at 
that time. Justice Norihiko Sugihara said that with the foreign 
minister's approval, Yoshino will be accepted as witness, and his 
questioning has been scheduled for December 1. 
 
The plaintiffs also submitted to the court a written statement by 
Yoshino saying that, "The initials 'BY' on the memorandum 
constituting the secret agreement are definitely mine. Even secret 
negotiations should be made public after a certain period of time." 
Yoshino has admitted the existence of this "secret agreement" during 
interviews with Yomiuri Shimbun and other media outlets. 
 
POLITICAL AFFAIRS 
 
8) Poll: Candidates not counting on their party leaders 
 
ASAHI (Page 1) (Abridged) 
August 26, 2009 
 
The Liberal Democratic Party is trying to consolidate its supporters 
and local organizations in its campaign for the upcoming general 
election for the House of Representatives. Meanwhile, the Democratic 
Party of Japan is making an appeal on its "competence to run the 
government." In the run-up to the general election, LDP and DPJ 
candidates are fighting campaign battles in their own ways. There 
are such differences between the campaign strategies of the two 
parties' respective candidates, the Asahi Shimbun found from its 
survey of candidates with Tokyo University Professor Masaki 
Taniguchi's office. Few LDP and DPJ candidates are putting forth 
their party leaders, and they do not count on their party heads in 
the election campaign. 
 
In the survey, candidates were asked to choose what they would 
regard as most important other than policies in campaigning for the 
election this time. The choices given for this question were: 1) 
working on usual supporters and organizations; 2) stressing past 
results; 3) emphasizing governing competence; 4) emphasizing the 
leader's qualification; and 5) the candidate's own results and 
qualification. 
 
Among LDP candidates, 48% chose to work on their usual supporters 
and organizations, topping all other answers. Among DPJ candidates, 
44% picked governing competence. As seen from these figures, the LDP 
is attempting to keep their supporters in the wind blowing against 
it, with the DPJ trying to wipe off the public's uneasy feelings 
about a change of government. 
 
TOKYO 00001962  006 OF 012 
 
 
 
9) Reports that the DPJ will win 300 seats seem unreal to voters 
 
TOKYO SHIMBUN (Page26) (Abridged) 
August 26, 2009 
 
Katsumi Sekiguchi 
 
The Aug. 30 House of Representatives election with all 480 seats 
being contested is only four days away. Major newspapers have 
headlined the results of their opinion polls that predicted the 
Democratic Party of Japan (DPJ) would garner over 300 seats - 
greater than the 296 seats the Liberal Democratic Party (LDP) won in 
the election four years ago thanks to the "Koizumi boom." What do 
the voters think of the DPJ's lead? I interviewed voters in Tokyo's 
Shimbashi, a district of salaried workers. 
 
"I am sure the DPJ will achieve an overwhelming victory," a 
36-year-old company employee of Chiba City noted as if to say that 
the DPJ will garner 300 seats without doubt. He added: "It is not 
that the voters are actively supporting the DPJ; they just don't 
want to vote for the LDP which has replaced the prime minister one 
after another." 
 
"I will vote for the DPJ," a 29-year-old part-time worker declared, 
while indicating that the figure (300) does not seem real to her. 
She also said: "Under the single-seat system, one vote can make the 
decisive difference, and the DPJ could become the sole winner. I 
wonder if the voters are backing the DPJ strong enough to give it 
more than 60 percent of the Lower House seats and to make (DPJ 
President Yukio) Hotoyama the new prime minister. (The figure) is 
somewhat scary." 
 
Meanwhile, a 68-year-old unemployed man of Nerima Ward said: "I will 
vote for the LDP as before. The LDP is most stable as a political 
party." While showing some understanding to the DPJ trend by citing 
people who are struggling to make ends meet under the LDP 
administration, he also commented: "Anyone casting his ballot based 
on the trend means that he has not learned anything from the Koizumi 
boom. I want to make my presence felt (by joining the minority)." 
 
A large number of voters -- 1.5 times the number of the previous 
Lower House election -- cast absentee ballots ahead of the Aug. 30 
poll. This time around, the mountain could move. What are the views 
of experts? 
 
"There are always differences between the results of pre-election 
polls and the actual election results," Hiroshi Miura, an election 
planner, noted. "Some 20 percent of people who said they would vote 
will not go to the polling stations. I think 90 percent of those 
people said they will vote for the DPJ, and naturally support for 
the DPJ will drop from the results in polls." 
 
Voter turnout holds a key. In the previous "postal election," voter 
turnout was 67.51 percent. Seventy percent is the watershed for the 
DPJ to garner 300 seats. 
 
Akikazu Hashimoto, a former professor at the National Graduate 
Institute for Policy Studies, who is well-versed in the voting 
behavior, took this view about the prediction that the DPJ will win 
300 seats: "Overwhelmingly backed by swing voters, in addition to 
the traditional DPJ supporters, the party will garner some 260 
 
TOKYO 00001962  007 OF 012 
 
 
seats. With their backs against the wall, traditional LDP supporters 
of all walks of life and of all ages are throwing their support 
behind the DPJ across the nation. There are solid grounds for the 
figure 300." 
 
10) Effect of "300-seat" prediction for DPJ: Its advantage probably 
remains unchanged 
 
TOKYO SHIMBUN (Page 2) (Abridged) 
August 26, 2009 
 
It has been reported that the Democratic Party of Japan (DPJ) could 
sweep into power by securing more than 300 seats while only about 
100 seats would go to the Liberal Democratic Party (LDP) in the Aug. 
30 House of Representatives election, based on the results of 
surveys conducted by the news media. 
 
News companies conduct surveys to assess the voting pattern about 
one week before the voting date of a national election. During the 
period between this date and the voting day, the voting pattern 
changed in many past elections. 
 
Such survey results bring about two types of effect: The bandwagon 
effect favorable for the advantageous party; and the underdog effect 
with people, out of sympathy, voting for the party perceived to be 
losing the elections. 
 
In the 2005 Lower House election, the bandwagon effect appeared. In 
surveys by the media, it was predicted that the LDP would win a 
majority independently. The outcome was its historically 
overwhelming victory, winning 296 seats, far more than the 
majority. 
 
The bandwagon effect also appeared in the 2007 House of Councillors 
election, in which the DPJ won a landslide victory in line with 
forecasts made by the media. 
 
In the Upper House election in 1998, survey results produced an 
underdog effect. In the election, the LDP suffered a crushing defeat 
with only 44 seats despite the prediction that the LDP was likely to 
secure at least the number of seats up for reelection. Prime 
Minister Ryutaro Hashimoto stepped down, taking the responsibility 
for the defeat. 
 
Under the mid-sized election district system, the underdog effect 
appeared in many Lower House elections. Since the single-seat 
constituency system was introduced, however, many voters tend to 
cast their ballots for candidates expected to win so that their 
votes will not be wasted. Given this, many observers anticipate that 
the survey results will work favorable for the DPJ in the upcoming 
election. 
 
11) Lower House election 2009: DPJ plans to form cabinet soon after 
Lower House election 
 
SANKEI (Page 3) (Excerpts) 
August 3, 2009 
 
Premised on its victory in the Aug. 30 House of Representatives 
election, the Democratic Party of Japan (DPJ) has decided to launch 
the work of forming a cabinet immediately after the election. The 
DPJ plans to informally pick the prime minister, chief cabinet 
 
TOKYO 00001962  008 OF 012 
 
 
secretary, finance minister, and foreign minister possibly early 
next week; and it will launch an administration transaction team by 
these cabinet ministers. This was revealed by senior party members. 
However, the Social Democratic Party (SDP) and the People's New 
Party (PNP), which are expected to participate in a DPJ-led 
coalition government, are expected to raise objections toward the 
DPJ's moves. The DPJ has already carried out a thorough background 
check, centering on those who will likely be appointed key posts. 
 
Hatoyama, who will be elected prime minister in a special Diet 
session after the Lower House election, is expected to serve as 
chair of the administration transaction team. Hatoyama has stated 
that he will pick Diet members to serve as chief cabinet secretary, 
finance minister, and justice minister. He is set to informally 
appoint these three ministers before a new administration is 
inaugurated. 
 
The transition team is also expected to discuss the selection of 
members of a National Strategy Bureau, which will devise basic 
policies for budget compilation and foreign and national security 
policies that the DPJ considers the main policies for the new 
government, as well as of an Administration Renovation Council, 
which will be in charge of a drastic review of government projects 
that have been criticized for wasting tax money. 
 
The DPJ will form the framework of a new cabinet prior to the prime 
minister's election so that it can smoothly conduct transaction 
work. The purpose is to highlight the fresh image of the new 
administration. 
 
However, it is indispensable for the DPJ to hold discussion with the 
SDP and PNP on the formation of a coalition government before the 
inauguration of a formal government. Therefore, the SDP and PNP may 
react negatively to the DPJ's moves. 
 
The DPJ are conducting the background check on about 200 people who 
may be serving in important posts. 
 
12) Ozawa likely to continue serving as DPJ deputy head 
 
TOKYO SHIMBUN (Top play) (Full) 
August 26, 2009 
 
With his party's victory in the Aug. 30 House of Representatives 
election in mind, Democratic Party of Japan (DPJ) President Yukio 
Hatoyama has started selecting the lineup of a DPJ administration. 
Hatoyama is determined to keep Deputy President Ichiro Ozawa in his 
current post and let him continue leading national elections. By 
doing so, Hatoyama aims to make preparations for next summer's House 
of Councillors election as early as possible. 
 
Ozawa has been responsible for picking candidates for the Lower 
House election and formulating the party's action policy. He is 
deputy prime minister of the DPJ's Shadow Cabinet. 
 
If Ozawa becomes a cabinet member, he will have to attend Diet 
sessions. If so, Ozawa will be certain to be pursued by opposition 
parties at the Diet because the first trial of his secretary, who 
has been indicted over allegations that he received illegal 
donations from Nishimatsu Construction Co., is expected to be held 
after the Aug. 30 general election. This could become an obstacle to 
Hatoyama's management of Diet affairs. 
 
TOKYO 00001962  009 OF 012 
 
 
 
Hatoyama, therefore, is inclined to have Ozawa concentrate on party 
business so that he will be able to continue exercising his campaign 
skills in next summer's Upper House election, without appointing him 
as a cabinet member. 
 
Hatoyama has said: "In order to maintain the DPJ's unity, I would 
like him to serve in a key party post." It is believed that Hatoyama 
will appoint Naoto Kan, another deputy president, as key cabinet 
member, and he will retain Secretary General Katsuya Okada in his 
post or name him as a key cabinet minister. 
 
It also appears to be certain that Supreme Adviser Hirohisa Fujii 
will be appointed to a key government post and that Policy Research 
Council Deputy Chairman Akira Nagatsuma will be named minister in 
charge of pension affairs. 
 
13) DPJ's Ozawa criticizes agricultural cooperatives for opposing 
FTA with U.S. 
 
YOMIURI (Page 4) (Full) 
August 26, 2009 
 
Democratic Party of Japan Deputy President Ichiro Ozawa criticized 
the Central Union of Agricultural Cooperatives (Zenchu) and other 
agricultural groups opposing a free trade agreement (FTA) with the 
United States before reporters in Kimitsu City, Chiba Prefecture on 
August 25. "We are saying that we will set up a system under which 
producers will be able to produce under any circumstances," he said. 
"There is nothing to worry about. Zenchu and the other agricultural 
groups have become bureaucratic. There is no need to pay any 
attention to them." He added, "I am sure that the farmers and 
producers will fully understand our position and give us support." 
 
When the Democratic Party of Japan drafted its manifesto (campaign 
pledges), it had at first called for the "conclusion" of an FTA with 
the U.S., but later revised this to "promoting negotiations" for an 
FTA in light of the opposition to the agreement. Ozawa has been 
voicing his displeasure about this. 
 
14) Ozawa likely to have stronger say in DPJ 
 
TOKYO SHIMBUN (Page 2) (Full) 
August 26, 2009 
 
Democratic Party of Japan (DPJ) has decided to have Deputy President 
Ichiro Ozawa take responsibility for election strategy even after a 
change of government takes place. If the party wins an overwhelming 
victory in the Aug. 30 House of Representatives election, a number 
of "Ozawa children" will be born, and Ozawa will eventually have a 
more sizable influence in the party. If his influence becomes strong 
enough to affect the party's policymaking, the new government might 
be operated under a dual-power structure, although the DPJ aims to 
unify ruling party and government. 
 
Ozawa visited the offices of 12 DPJ-backed first-time candidates in 
the Chiba No. 11 and No. 12 constituencies and the Japan 
Agricultural Cooperatives (JA) in these districts yesterday. He told 
the candidates while shaking hands with them with a smile: "You are 
neck-and-neck with your rivals in the election campaign. Continue to 
work hard during the remaining five days." 
 
 
TOKYO 00001962  010 OF 012 
 
 
President Yukio Hatoyama, Deputy President Naoto Kan, and Secretary 
General Katsuya Okada have been responsible for delivering stump 
speeches, while Ozawa has devoted himself to helping behind the 
scenes. In the process of selecting candidates to run under the 
proportional representation segment, Ozawa picked out new faces 
prior to the official announcement of the election. After the 
official campaign started, he has earnestly visited the election 
offices of DPJ candidates to encourage them and industrial 
organization to seek their support. 
 
Asked about what post he wants to assume after the Lower House 
election, Ozawa said: "I have nothing special. My desire is to bring 
about a change of government and have parliamentary democracy take 
root in Japan. I will be satisfied if this goal is attained." 
 
Hatoyama wants to keep Ozawa as a key official responsible for 
election strategy, with an eye on the House of Councillors election 
next summer, in which the party aims to win a majority 
independently. In the Upper House election in 2007, Ozawa 
contributed to forcing the ruling coalition into a minority. As it 
stands, he has a reputation as an election strategist. 
 
In addition to the Ozawa children who were born in the 2007 Upper 
House election, who have played a certain role in the party, a large 
number of first-time candidates backed by Ozawa are likely to go 
into the Diet. Should Ozawa also take the initiative in fielding 
candidates in the Upper House election next year, the Ozawa group 
will expand further. 
 
Since many senior party members will join the cabinet if the DPJ 
takes over the reins of government, Ozawa will eventually hold real 
power in the party. Concern is expected to rise in the party that 
Ozawa might have a stronger voice not only on election strategy but 
even on the handling of the government. 
 
15) Iraqi oil fields: Memorandum for Japanese companies to secure 
business interests to be signed as early as next month; ENEOS making 
final adjustments 
 
YOMIURI (Page 8) (Abridged slightly) 
August 26, 2009 
 
Talks between three Japanese companies, including Nippon Oil 
Corporation (ENEOS), the largest primary oil distributor (in Japan), 
and the Iraqi government over business interests in the Nasiriyah 
oil field in southern Iraq have entered the final phase. Only a few 
issues, such as fund-procurement quotas, remain to be settled. If 
the talks go smoothly, executives of the three companies will visit 
Iraq as early as September to sign a memorandum. 
 
The three Japanese companies are Inpex Corporation (INPEX), a 
leading oil field developer, and JGC Corporation, a major plant 
engineering firm, as well as ENEOS. 
 
The plan is for those companies to undertake the development of a 
portion of the mine lots in the Nasiriyah oil fields. Output of 
150,000 barrels a day is expected in the first two years, and then 
the amount will be gradually increased to 600,000 barrels, which is 
equivalent to more than 10 percent of Japan's daily crude oil 
consumption. The Japanese consortium involving three companies has 
been competing with Italy's Ente Nazionale Idrocarburi (ENI) and a 
major Spanish resources company. Iraq had effectively narrowed the 
 
TOKYO 00001962  011 OF 012 
 
 
candidates down to the Japanese consortium by the end of June. 
 
The Iraqi government then pressed ahead with negotiations on terms 
and conditions with Japan, while once again involving ENI. Iraq has 
now entered the final phase of talks on the methods for setting 
crude oil prices and Japanese companies' collection of loaned 
money. 
 
The Japanese companies plan to boost the ratio of procurement of 
crude oil for domestic consumption from independently developed oil 
fields from the present 19 percent or so to 40 percent by 2030. If 
all output from the Nasiriyah oil field -- 600,000 barrels a day - 
is exported to Japan, such a ratio will rise to 33 percent. As a 
result, the project in the Nasiriyah oil field will have great 
significance for Japan's energy security. 
 
Mitsui & Co. also secures right to tender bid 
 
It was learned on August 25 that Mitsui Oil Exploration, a 
subsidiary of Mitsui & Co., has obtained a right to take part in the 
second bidding for the development of oil fields and gas fields in 
Iraq to be held as early as the end of this year. The planned tender 
targets 14 oil fields, including a major one with daily output 
between 600,000 barrels and 800,000 barrels, and two gas fields. Up 
to six Japanese companies will likely take part in the bidding. This 
is a separate project framework from the development of the 
Nasiriyah oil field, for which talks on business interests are 
underway, based on a face-to-face meeting formula. Among Japanese 
companies, ENEOS, INPEX, Japan Petroleum Exploration (JAPEX), 
Mitsubishi Corporation, Japan Oil, Gas, Metals, National Corporation 
(JOGMEC) have obtained to a right to tender bids. 
 
16) Up to 5 million yen to be shouldered by household budget if 
global warming greenhouse gas emissions are to be cut 15 percent by 
2020 
 
NIKKEI (Page 1) (Full) 
August 26, 2009 
 
The Ministry of Economy, Trade and Industry (METI) on August 25 
finalized a set of concrete measures to achieve a mid-term goal of 
cutting greenhouse gas emissions 15% in comparison with the 2005 
level by 2020. The package includes conditions to attain such a 
goal, including 80 percent of newly-built houses meeting the 
strictest energy-conserving standards and raising the proportion of 
next-generation vehicles, such as hybrid vehicles, to the number of 
brand-new cars to be sold to about 50 percent. METI estimated that 
if households adopt all proposed measures, it would cost each 
household an additional 5 million yen or so. 
 
The package was presented at a meeting of the supply-demand 
subcommittee of the resources and energy research council, an 
advisory panel reporting to the METI minister. Since Japan's carbon 
emissions in 2005 stood at approximately 1.35 billion tons, it is 
necessary to cut roughly 200 million tons in order to achieve the 
goal of a 15 percent emissions cut. According to METI-proposed 
measures, 38 million tons will be cut by the introduction of 
energy-conserving housing and office buildings, 21 million tons by 
the dissemination of next-generation vehicles and 17 million tons by 
the dissemination of energy-saving home electronics. The package 
also calls for raising the proportion of newly-built houses that 
meet the strictest energy-conserving standards from the current 40 
 
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percent or so to 80 percent and turning all home electronics 
purchased by consumers into energy-conserving types. 
 
METI also estimated the additional burden to be shouldered by 
households, in the event they introduce a set of measures to cut 
greenhouse gas emissions. The government is already distributing 
approximately 200,000 yen in standard subsides for the purchase of 
home appliances. Apart from this, METI estimated 2.3 million yen for 
the installation of solar panels and 1 million yen for heat 
insulation work to make houses an energy-conservation type, etc., 
totaling roughly 5 million yen. It would cost about 30 million yen 
to apply these measures to a small-size office building with area of 
1,000 square meters. 
 
The DPJ advocates a goal of cutting 25 percent from the 1990 level 
or 30 percent from the 2005 level, which is stricter than the 
government's goal. Chances are that if a change of administration 
occurs, financial burden on households would increase. 
 
ROOS